Which is a better first or second charge loan?
Realistically neither is specifically better, in that they both operate largely in the same way, have the same terms, and serve the same purpose.
That being said, it’s harder to get a second charge mortgage or loan compared to a first charge mortgage. That’s due to the fact that it’s lower risk for lenders to be first in the queue for your asset than second, however, we have plenty of lenders on our panel that are happy to lend on a second charge as well as a first charge mortgage.
With that in mind, it’s also broadly true that you’re likely to get better rates with first charge mortgages as they’re considered less risky. So realistically, there isn’t a better or worse version, but a first mortgage is considered less risky.
What does the process look like?
First and foremost you’ll need to speak to one of our brokers that can get a little bit more information from about what you’re looking for, what type of amount you need and how many years you want to repay the loan over.
Secondly, you’ll need to be able to provide proof of your identity, your income, and potentially also your credit rating or credit file too. Once we’ve established these details, we’ll shop the market for you and present you with the best deals from our panel of lenders.
An agreement will be drawn up in principle, and you’ll then need a solicitor to finalise the loan and any finance, and once the legalities have been formalised the funds will be released to you.
First charge mortgage lenders
We have a large and diverse panel of lenders happy to work with our clients for a mortgage, and we have access to lenders that you wouldn’t be able to reach through traditional means. We work with, for example, investment funds, pension funds, foreign banks and investors as well as more traditional UK lenders.
We’re strategic partners with a number of these lenders who can offer our clients exclusive deals on first charge mortgages. Due to our experience, and the amount of time we’ve been working with these lenders, we’re often able to provide you with preferential rates and terms compared to if you went down the traditional route.
We’re also a highly experienced broker service, so we’re able to provide you with advice that you won’t get anywhere else, as well as helping to make the process as quick and seamless as possible.
Speak to our expert second charge loans brokers today
If this is something you’re interested in, then get in touch with one of our brokers today who can run you through the process and get you approved for your mortgage.